KUALA LUMPUR (Nov 16): Bursa Malaysia Derivatives Clearing Bhd, a wholly owned subsidiary of Bursa Malaysia Derivatives Bhd, received recognition as a Third Country Central Counterparty (TC-CCP) by the European Securities and Markets Authority on Nov 7.
According to a press statement by Bursa Malaysia on Wednesday (Nov 16), with the recognition, Bursa Malaysia Derivatives Clearing will have greater access to European investment communities. At the same time, it will be easier and more cost-effective for European counterparties to do business with Bursa.
“This recognition confirms that Bursa is aligned with international standards, which will create new opportunities with European clearing institutions,” said Bursa Malaysia Derivatives acting director Mohd Saleem Kader Bakas.
The TC-CCP recognition was granted under the European Market Infrastructure Regulation, and TC-CCPs are able to provide clearing services to members or trading venues established in the European Union.
Additionally, TC-CCP recognition indicates that market participants from Europe will be subjected to lower capital requirements or charges under the Basel III framework.
The Basel III framework was introduced by the Basel Committee on Banking Supervision that enables European members to manage their counterparty risk efficiently.
“We are the third exchange in Asean to be accorded this recognition, which is a significant milestone for Bursa. We are very grateful for the continued support received from the Securities Commission Malaysia throughout the TC-CCP application process,” added Mohd Saleem.